Buy American' Law Trips State In Car Deal

February 05, 1985|by BILL GERNERD, The Morning Call

Pennsylvania's "Buy American" law, Act 40 of 1984, has posed a problem not only for the state itself, but for Allentown and other municipalities taking advantage of a state contract to replace police vehicles.

The state Department of General Services recently went to bid for a new contract to furnish vehicles for the state police, with similar vehicles to be available at the state's price to other municipalities for their police departments.

The contracts, however, "have been placed on hold," according to department Secretary Walter Baran.

He advised all municipalities that the contract cannot be awarded because of "a number of issues/problems which have arisen in regard to compliance with Act 40 of 1984."

Section 5a of the "Buy American" bill stipulates that motor vehicles purchased by the state are to be "manufactured and assembled in the United States." It also indicates that the state can purchase foreign cars assembled in the United States if 75 percent of the car's value consists of parts manufactured in this country.

While a spokesman in Baran's office said he had no estimate when the problems will be resolved, he did say the secretary "in the very near future" plans to exercise another option made available under Act 40.

Act 40 allows the head of an agency, such as Baran, to waive the requirements of the act if he feels it would be in the public's interest and safety to purchase a product not otherwise conforming to the act.

Baran, according to the spokesman, feels it is imperative that the state place its order for the new police cars.

Allentown will welcome the state's decision to move ahead and award the police car contract because the city is planning to replace its police fleet with new cars.

But barring prompt action by the state, the city is preparing to go to bid on its own for the cars.

Aware that the city also is required to comply with Act 40, Purchasing Agent Stephen Hudson said the mayor would probably be required to waive the act's "Buy American" restrictions.

The spokesman in Baran's office also indicated the General Assembly soon will be considering an amendment to Act 40 to change the language prohibiting purchases to only those goods made in the United States to those made in North America.

That change at least would ease the problem the state faces in purchasing cars, many of which are assembled in Canada.